OpenAI and Meta (the parent firm of Facebook, Instagram and WhatsApp) are reportedly in talks with Reliance Industries (one of India’s largest conglomerates), to collaborate on AI-related projects in India. According to a report by The Information, OpenAI and Meta might be looking to tap into the country’s growing AI ecosystem by leveraging Reliance’s infrastructure, market reach, and data resources.
The report says one proposal under consideration involves Reliance Jio (a subsidiary of Reliance Industries) distributing OpenAI’s ChatGPT. Additionally, OpenAI has considered reducing ChatGPT’s subscription fee from $20 to a more affordable rate.
Meanwhile, Reliance is also exploring the possibility of selling OpenAI’s models to its enterprise clients via application programming interfaces (APIs). The company is also planning to host these models locally to ensure customer data remains within India. Interestingly, this initiative could leverage a new data center that Reliance plans to establish in Jamnagar, Gujarat.
Now coming to Meta’s part, the social media powerhouse has also engaged in discussions with Reliance Industries about potential AI partnerships. The specific details of these talks have not been publicly disclosed. But last year, Meta reportedly planned to strengthen its presence in India by setting up its first data center in the country. At that time, reports indicated that the facility would be located at Reliance Industries’ campus in Chennai, Tamil Nadu. This potential move could allow Meta to operate 4-5 data nodes across multiple locations, improving its digital infrastructure in one of the world’s largest internet markets – India.
In August 2024, a few reports emerged suggesting that Meta was in talks with Reliance’s Jio to license its Horizon virtual reality (VR) software. The company aimed to power a VR device that Jio would develop. This effort was said to be part of Meta’s strategy to expand its influence in the VR and augmented reality sectors beyond its proprietary devices. These moves become more significant considering Meta is already an investor in Jio Platforms. In April 2020, Facebook (now Meta) announced an investment of $5.7 billion (~ ₹43,500 crore) for a 9.99% stake in Jio.
These developments also align with Reliance’s broader strategy to establish a significant presence in the AI sector. In September 2023, Reliance announced a partnership with Nvidia to set up the infrastructure necessary for large AI applications. Also in the same year, the company’s Chairman – Mukesh Ambani announced plans to introduce AI systems similar to OpenAI’s ChatGPT.
Clearly, Reliance has a strong presence in telecom (with Jio) and data centers, which could help OpenAI and Meta scale AI models and services in the country. Also, teaming up with Reliance could allow OpenAI and Meta to develop AI models that cater specifically to Indian languages, businesses, and consumers. However, it is important to note that as of now, these discussions are still ongoing. Notably, the Indian AI market is expected to reach $17 billion by 2027.
